Anti-Money Laundering Solution Market is Growing at 16.2% CAGR of during 2019–2027

Increasing Focus of FinTech Companies on Implementing Automated Anti-Money Laundering Systems Fuels Market Growth – Research by The Insight Partners


Pune, India, Feb. 17, 2021 (GLOBE NEWSWIRE) -- According to The Insight Partners' new research study on “the anti-money laundering solution market was valued at US$ 1,503.99 million in 2019 and is projected to reach US$ 5,866.51 million by 2027; the Increasing focus of FinTech companies on implementing automated anti-money laundering systems is driving the market growth. However, increasing focus on keeping a check on risks related to digital payment methods is hampering the market growth.

Europe dominated the anti-money laundering solution market and accounted for more than 25% share in 2019. In 2018, the European provinces faced several instances of money laundering; e.g., an investigation found that up to US$ 30 billion of ex-Soviet and Russian money flowed through the Estonian branch of Danske Bank, which is Denmark’s largest bank. Moreover, as a part of the “structural infringement” of the Netherlands’ Money Laundering and Terrorist Financing Act, Dutch Bank ING paid US$ 948.58 million (€775 million) in fine for allowing money laundering through its accounts. To keep a check on such events, in July 2018, the European Commission enforced the 5th Anti-Money Laundering Solution Directive that focuses on establishing centralized and public-registered companies. By making corporate ownership of companies’ public, the directive expects to mitigate the use of shell companies that exist solely on paper to convert the profits of crimes into ostensibly legitimate assets. Moreover, as per the directive, the data on these registers needs to be subject to comprehensive verification to ensure that the registers cannot be manipulated.

Anti-Money Laundering Solution Market Forecast to 2027 – COVID-19 Impact and Global Analysis – by Component (Software and Services), Deployment Type (On-Premises and Cloud), Product (Transaction Monitoring, Compliance Management, Currency Transaction Reporting, and Customer Identity Management), Industry (Healthcare, BFSI, Retail, IT and Telecom, Government, and Others),”

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(Anti-Money Laundering Solution Market Segmented by Region/Country: North America, Europe, Asia Pacific, Middle East & Africa, and Central & South America)


Technological advancements are leading to the increasing the number of cyber criminals. FinTech firms have the potential to help banks around the world to stay competitive in the global market. Whether tracking digital currency, machine learning, or connecting data—more robust systems, combined with advancements in technology, have been proactive in the fight against money laundering. Owing to the increasing consumer adoption of digital transactions and subsequent transaction volumes in competitive FinTech firms in 2019, many firms opted for automated anti-money laundering practices. The automated anti-money laundering systems provide a negligible amount of false positives compared to those generated by traditional data and technology.

Due to the growing connection between FinTech and AML solutions, the Association of Certified Anti-Money Laundering Specialists announced the launch of a new certification program in December 2020, for FinTech firms who are seeking to meet regulatory standards. The association has developed the Certified AML FinTech Compliance Associate program in collaboration with FINTRAIL. The program is built to increase the compliance toolkit of FinTech personnel working in financial crime prevention at the entry-level. Thus, the increasing focus of FinTech companies on implementing AML solutions is propelling the market growth.

Anti-Money Laundering Solution Market: Segmental Overview
Among the common deployment types, on-premise deployment provides a huge benefit to enterprises by enabling them to preserve all their business processes and current internal systems, such as authentication and access privileges, within their physical boundaries. In addition, enterprises can implement their own data security standards and controls all the processes are housed within their restriction. They also have the provision to easily leverage existing hardware investments while providing their employees with a cloud-like experience. On the other hand, the cloud deployment type is a model where the data is stored in the third-party cloud provider. The clients have no control over the location of the infrastructure; this infers that if a vendor’s data center is breached, the enterprise will have no control over time period of the outage or over the data that may be conceded. All the clients on clouds share the same infrastructure pool with narrow security protections, configuration, and accessibility variances.

On the basis of components, the anti-money laundering solution market is segmented into software and services. The software segment is projected to grow at a CAGR of more than 14% during the forecast period. There is a plethora of Anti-Money Laundering (AML) software available as per end-users demand. The majority of the firms differentiate their need for AML on the basis of their approach. Rule-based approach software, risk-based approach software, behavior-based approach software, and intelligence-based software are a few of the widely deployed AML software solutions. The rule-based approach software operates by comparing transactional data and matches the same with particular scenarios to imitate malicious activity. Although this software is user friendly, the software often raises the concern regarding false positives. The risk-based approach software is where the solution focuses more on the detection of risk associated with suspicious activity, which might include intelligence, rule, behavior, or a combination of these approaches.

Anti-Money Laundering Solution Market: Competition Landscape and Key Developments
BAE Systems Applied Intelligence made an announcement regarding a new offering created on the Amazon Web Services (AWS) to offer complete anti-money laundering regulatory compliance solutions.
In 2020, BEC and SAS Institute partnered for a new cloud platform for money laundering and terrorist financing. A. Digit million DKK investment confirms BEC banks access to worldwide leading technology to fight crime.

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